If
you have a tax liability you are unable to pay, my first
advice is to FILE THE RETURN. Do not think you will save money
if you just don't file the return because you owe money.
You will be assessed a failure to file and pay penalty which is 47.5%
(22.5% late filing and
25% late payment)
of the tax. However, if your return was over 60 days late, the
minimum failure to file penalty is
the smaller of $205 or 100% of the tax required to be shown on the
return. These
penalties can add up to quite a bit.
If
you do end up having a tax liability you are unable to pay, file your
tax return, by the deadline, to avoid the failure to file penalty.
Below
are your options:
-
Pay as much as you can when you file your return
-
Request an additional 120 days to pay your tax in full using the Online Payment Agreement application on www.irs.gov
-
Set up a payment plan with the IRS
-
Prove financial hardship, the IRS won't ask you to pay until your circumstances have changed
-
Call the IRS at 800-829-1040
Keep
in mind, the above options do not get rid of penalties and interest on
your unpaid tax liability.
The
bottom line is: do not ignore the issue. Ignoring your tax
liability will cause you to stress, lose time dealing with the
issue and paying the IRS more money in
the end.
Candace Stevens, CEO/President of
Number Cruncher LLC
No comments:
Post a Comment